Weekly Report 23/08 -27/ 08 / 2010

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The bullish harmonic butterfly pattern is still in favor as the areas between 127.2% and 161.8% Fibonacci levels of XA leg, which still offer a solid support to the pair as seen on the provided four-hour chart. The candlestick structure could be an indication that the harmonic downtrend line or rather the upper line of the descending channel could be touched and a break of it could bring additional positive actions. Thus,we still see chances for achieving ascending movements during this week.

The trading range for this week is among key support at 128.40 and key resistance at 137.30.

The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.

Previous Report

Support132.25131.65131.00129.80128.40
Resistance133.60134.25134.80135.50136.20
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 132.50 targeting 136.20 and stop loss above 129.80 might be appropriate.